Although Monsanto's (MON) second quarter results will likely not lead to dancing in the streets among its shareholders, it does represent some much-needed stability in the business. The fiscal second quarter is a major part of this seasonal company's revenue and profit base, and the results were encouraging. Moreover, with some attractive products in the pipeline there is a credible case for staying long on the shares of this agritech company.
Results – Not Great, But Not a Disaster
Dealing with the bad news first, Monsanto's fiscal second quarter results did come in shy of the average analyst guess, as sales totaled $4,129 million versus the $4,150 million expectation. For the quarter, sales grew 6% in total, as seed revenue rose 5% to $3,421 million and revenue from the herbicide business rebounded 10%.
Within those numbers, corn revenue climbed 7% and soybeans dropped 3%, roughly reflecting recent USDA plantings data showing higher corn planting and slightly lower soybean planting. Cotton revenue was up strongly (nearly doubling), but still represents a tiny percentage of the company's business.
To read the full piece at Seeking Alpha, click below:
At First Glance, Monsanto Still Has Work to Do
No comments:
Post a Comment